It seems the rebooted cult hit Phantom Dust has hit a snag in development, with developer Darkside Game Studios closing its doors today according to a report from Kotaku.

Kotaku notes that the studio's closure came about thanks to Microsoft cancelling Darkside's version of Phantom Dust, however a statement from Microsoft confirms the game is still in development. Head of marketing Aaron Greenberg stated that development on the new Phantom Dust is still moving "full steam ahead," though no specifics on who is now overseeing development were revealed.

Darkside Game Studios isn't exactly a rookie studio, having contributed to titles like BioShock 2, Borderlands: The Pre-Sequel and even Microsoft's own Sunset Overdrive and Gears of War: Judgement. Hopefully those affected by the closure are able to find swift employment and we wish them the best.